Be wary of forensic loan auditors

BALTIMORE - The sub-prime loan market left many Marylanders with bad mortgages, filled with shortcuts and some deceptive paperwork. It can be a battle to sort out the mess and see if something can be done. But as ABC2 News Joce Sterman explains in this week's Scam Alert, you shouldn’t believe big promises being made by some forensic loan auditors.

We've told you about foreclosure rescue scams from companies that claim they can save your house from foreclosure. Crackdowns on that industry have forced some scammers to try a new spin. It's called forensic loan auditing, where companies go through your mortgage docs with a fine tooth comb.

Angie Barnett with the Better Business Bureau of Greater Maryland says, "They're auditing your paperwork to determine if there were any violations of state or federal regulation or laws around mortgage completion."

And many of these companies claim that if they find mistakes or problems, you can get your mortgage cancelled, modified or even avoid foreclosure. But the BBB and the Federal Trade Commission say you shouldn't hold your breath. Barnett explains, "They're (the FTC) saying they cannot find any evidence that this service will lead to that outcome."

Instead, you'll be asked to pay an upfront fee of hundreds, even thousands for an audit and you may get nothing in return. So the BBB and the FTC say you should be wary of these auditing firms, especially if they guarantee they can stop the foreclosure process or encourage you to stop talking to your lender altogether.

If you're having trouble with your home loan, our experts say you should reach out to your lender as well as free counselors available through Maryland Hope. Barnett says they can legitimately help you sort through all that paperwork and steer you clear of con artists claiming a little forensic detective work on your documents can save the day.